FIXED INCOME MARKETS
Money Markets
Opening System liquidity improved to c.₦381.08 billion long, , compared with the opening balance of ₦200 billion long, recorded yesterday Consequently, the Open Repo Rate (OPR) and the Overnight Rate (O/N) remained unchanged at 11.63% and 12.00%.
Outlook: We expect the interbank rates to remain at current levels tomorrow.
Treasury Bills
The treasury bills market was relatively quiet today, with few trades consummated at the tail end of the curve. Average yield increased by 30bps to 5.70%, due to mild sell interests across most papers, as market anticipates tomorrow’s auction, where the DMO will be offering N182.86bn.
Outlook: We expect market activity to be skewed towards the treasury bills auction tomorrow.
FGN Bonds
The local bonds market was mostly quiet, with mixed sentiment on papers like the 2026, 2028, 2029, 2032, 2049 and 2050. Nonetheless, the average mid-yield stayed at 13.66%.
Outlook: We expect the current trend to persist tomorrow
Eurobonds
Sentiment in the Eurobonds market tilted to a bearish territory, reversing most of the gains recorded in the previous sessions, as sell interests were observed across Nigeria and Angola, mainly due to the fall in oil price today amid economic growth concerns and ECB’s determination to sustain its rate hiking trajectory. However, the Egypt curve enjoyed mild buyside activity. Consequently, the average yield expanded 20bps to settle at 11.17%.
Outlook: We expect the bearish trend to persist tomorrow.
Equities
The Nigerian equity market closed on a bullish note, as the Nigerian Stock Exchange All Share Index (NGX ASI) increased by c.0.37% to close at 56,016.09 points, while year-to-date return settled at c 9.30%. Observably, buying interest in ETRANZACT (0.40%) and ZENITHBANK (0.05%) drove the upwards trajectory today. The NGX Oil & Gas and Consumer Goods Indices appreciated in value by 1.02 %, and 0.21% respectively. While NGX Banking and Industrial Goods Indices depreciated by 0.05% and 0,02% respectively. UBA led the volume charts with c.47.13 million units and AIRTELAFRI led the value with c. ₦ 1.76 billion.
Outlook: We expect a bullish performance tomorrow.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate remained at ₦464.67/US$1.00 today.
Outlook: We expect the NAFEX rate to hover at similar levels tomorrow.
Commodities
Oil prices tumbled more than $1 a barrel on Tuesday, after a strong rally in the previous session as worries about global economic growth outweighed Saudi Arabia’s pledge to deepen output cuts. As of report time, Brent oil prices depreciated by c. 1.99% to $75.18pb, day-on-day, while WTI depreciated by c 2.18% day-on-day to settle at US$70.58pb. Spot Gold appreciated by c. 0.15% day-on-day to close at US$1,977.30per ounce as of report time.
Outlook: We expect oil prices to fall as economic fears overshadow Saudi output cut.
